HwangIM: Local bourse to continue ascension post GE13
KUCHING: Bursa Malaysia Bhd ( Bursa Malaysia) is expected to continue its ascension with investors back to deploy their cash to the market now that the General Elections 2013 (GE13) is over.
“Given the ruling party has maintained its position as the government and the election overhang is behind us, we believe our local bourse will continue its ascension as investors can now start deploying their cash to the market, which has been sitting on the sidelines waiting for the outcome of the elections,” said David Ng, chief investment officer of Hwang Investment Management Bhd ( HwangIM) to The Borneo Post via email.
“We are expecting a surge in buying activities led by foreign and local institutional investors who are attracted by our lagging market performance versus the regional peers and strong economic fundamentals such as good foreign direct investment, a positive investment cycle and strong consumer confidence.”
In HwangIM’s case, Ng noted that it had been gradually deploying its excess cash to work since the end of February and have been buying
Given the ruling party has maintained its position as the government and the election overhang is behind us, we believe our local bourse will continue its ascension as investors can now start deploying their cash to the market, which has been sitting on the sidelines waiting for the outcome of the elections. David Ng, HwangIM chief investment officer
the financial, oil and gas, and some property development stocks.
“This was to position the portfolio for what we expected to be a status quo election outcome. Now, we are adding on equity weight in sectors that will do well post- election such as those involved in the continuation of nation building and economic development.”
These, he added, were the oil and gas, financial, construction and media sectors, in which the latter is a result of stronger consumer confidence and discretionary spending.
“We are also expecting a strong ringgit currency this year versus the greenback and other G3 currencies given the strength in our economic fundamentals, relatively high bond yields, foreign equity inflows coupled with the continued low global interest rate environment.”
On a broader perspective, Ng noted his investment strategy for the Asian equity portfolio as well as the local equity funds was to buy and hold out for the global economic recovery to pan out and re-evaluate his strategy should the Federal Reserve change its course, or if HwangIM’s view of a global recovery does not take place.